Story by Timothy Malcolm, published on msn.com on 28.09.2025
While Texas remains a nationwide leader in renewable energy production, natural gas continues to dominate statewide. That will only continue as Gov. Greg Abbott pushed through funding for another NRG-led natural gas power plant that will be constructed near Houston.
Abbott on Friday announced a Texas Energy Fund loan agreement for NRG Energy’s 721-megawatt (MW) power plant currently under construction at the Cedar Bayou Generating Station off Highway 146 in Baytown.
The $562 million loan is the third such loan given by the state under the In-ERCOT Generation Loan Program, which aids projects adding dispatchable power to the region managed by the Electric Reliability Council of Texas (ERCOT). The loan term began Sept. 26 and runs through Sept 25, 2045. NRG expects the plant to be generating power by summer 2028. The total cost of the project is an estimated $936 million.
“Texas continues to grow as more people choose to raise their families and build their businesses in the energy capital of the world,” Abbott said. “This 721 MW investment in the Texas grid will ensure the state continues to meet and provide for this incredible growth with a robust, reliable supply of energy to power Texas homes and businesses.”
Back in August, NRG received $216 million through the same program for a 456-MW natural gas plant at the TH Wharton Generating Station in North Houston. The energy company also has plans for a potential 456 MW fast-start plant at Greens Bayou.
A report in June by the Environmental Integrity Project, a Washington D.C.-based nonprofit, showed companies were looking to build 108 new power plants and expand 17 other existing facilities in Texas over the next several years. Texas energy leaders are looking to meet an increasing demand for power amid the growth of new tech through data centers and other AI and cloud-based facilities.
Meanwhile, renewable energy sources including solar and wind continue to increase across Texas. The Lone Star State tops the country in wind generation, while Texas trails just California in solar. Still, some energy companies are beginning to move on from renewables in a return to heavy fossil fuels.
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